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UK BAA Keynote November 2016
- 1. Gerard Grech CEO, Tech City UK November 2016 @TechCityUK @gerardgrech Developing a Agenda: -‐ National context -‐ Success stories -‐ 4 key drivers of digital economy growth -‐ Why is this all so important?
- 2. Who are we? 1. programmes | 2. policy convening | 3. advocacy -‐ Founding stage -‐ 12,000+ in training -‐ 50% want to start their own business -‐ Later Stage -‐ $3bn raised -‐ 10 acquisitions Most comprehensive annual analysis of the UK’s Digital Tech Economy -‐ Mid stage -‐ Mentorship program -‐ £200M+ raised Accelerating digital growth across North of England Concierge service for fast-‐growth US tech companies Dedicated Visa Scheme for hiring digital tech talent Best practice mini reports to share learnings
- 3. 3 British Digital Tech Economy is growing steadily Tech Nation 2016 Report £161Bn Total Digital Turnover* +32% than the wider UK Economy Growing Source: Tech Na.on 2016 Report, Tech City Uk/Nesta *based on 58K iden.fied Digital Businesses @techcityuk @gerardgrech
- 4. Recent OECD/McKinsey report (Aug 2016) puts UK in top ranking on digital share of economy; a great place to build form
- 5. Acquired by News Corp in 2015 – example of traditional industries being transformed by disruptors Acquired for £114million News Corp harnesses Unruly to: • Bet big on mobile and video -‐ launch a new vertical video ad format purpose built for mobile audiences • provide new insights to its adver.sers and improve ad engagement
- 6. 400 employees in: New York, Edinburgh, Glasgow, Orlando & Los Angeles Fanduel Web-‐based fantasy sports game and the largest daily fantasy sports company in the industry. As of April 2016 most U.S. states consider fantasy sports (including daily fantasy sports) a game of skill and not gambling. @techcityuk @gerardgrech
- 7. Finance & Fintech: Nutmeg Nutmeg provides low-‐cost online wealth management makes investment expertise accessible to millions of people who usually couldn’t afford advice @techcityuk @gerardgrech
- 8. MagicPony London based Artifical Intelligence company – uses neural networks – systems that are designed to think like human brains Twitter acquired Magic Pony Technology to provide expanded data for images, used to: • enhance a picture or video taken on a mobile phone • help develop graphics for virtual reality or augmented reality applications. June 2016 $150 million deal
- 9. Deliveroo Raised another $275 million in funding, a Series E investment -‐ values the company at around $1 billion. The investment will go into growing its service in both new and existing markets & investing in its new initiatives -‐ includes a new B2B remote kitchen service, RooBox -‐ gives restaurants access to delivery-‐only kitchens in key locations Live in 84 cities Facing heat from competitors -‐ targeting the higher end of the prepared food market – rivals include Uber, which has stormed into Europe with UberEATS, as well as others like Delivery Hero, Just Eat, and Amazon
- 10. Farfetch Platform for luxury brands and boutiques from around the globe, everywhere from Tokyo to Toronto, from Milan to Miami. Farfetch was founded in London in 2008 by the Portuguese entrepreneur José Neves and now has offices in nine countries globally.
- 11. TransferWise Banks and other providers oVen add markup to their exchange rate -‐ TransferWise transparently displays its fee upfront and deducts it before conversion Latest funding values TransferWise at £750 million
- 12. 12 The impact: >40% of European ‘Tech Unicorns' ($1bn+) are in the UK @techcityuk @gerardgrech 47 European Unicorns 19 UK Unicorns
- 13. 3. Rich ecosystem & connected nation 1. Smart capital 2. Strong business & policy environment 4. Creative talent & critical mass of expertise 4 Key growth drivers powering the UK’s digital economy
- 14. 1. More funds now exist, opening up new opportunities and securing the growth potential of talented teams
- 15. Selected Recent UK IPOs $552M Gross Proceeds $3,341M Gross Proceeds $2,042M Gross Proceeds $597M Gross Proceeds $580M Gross Proceeds 2,074 2,010 2,536 59 0 1,672 63 8 36 4 31 8 14 6 2 9 0 50 0 100 0 150 0 200 0 250 0 300 0 LSEG NYSE NASDAQ SGX HKSE #ofCompanies* London Stock Exchange is a hub for international businesses Domestic International @techcityuk @gerardgrech
- 16. London/UK has a strong investment/VC eco-‐system In 2015, 5x more VC investment than 2010. >30% of all EU VC money. UK companies consistently raise >30% of all European VC money th UK VC-‐Backed Investment Activity Top Deals & Cities, Q1’16 @techcityuk @gerardgrech $5B $13B $12B $7B$7B $5B $3B $2B $0B $2B $4B $6B $8B $10B $12B $14B 2016)YTD2015201420132012201120102009 Total-VC-Capital-Invested UK Germany France Israel Russia Sweden Switzerland RoE
- 17. 82. End-‐to-‐end policy conditions for tech growth are ripe Regulatory environemnt is key >£2.75 Bn latest market Cap >£1.1 Bn latest market Cap 4. Corp Tax: 17% (joint lowest in the G20) 1. Seed Enterprise Investment Scheme & EIS: 50% relief on capital gains tax 3. Visas: Entrepreneurs’ Visa, Tech Nation Visa 2. R&D Tax Credits: fueling innovation 5. London Stock Exchange high growth segment @techcityuk @gerardgrech
- 18. UN E-‐Government Survey 2016– UK ranked No.1 • E-‐Government development Index ranked UK No.1 • E-‐Participation index ranked UK No.1 • E-‐government to provide public services through one stop-‐platforms & online transactions • Ensures that public institutions are more inclusive, effective, accountable & transparent • Drive towards Open data for public information & scrutiny
- 19. 3. Rich Ecosystem: >60 UK tech accelerators, >100 co-‐ working spaces & 50+ tech business support orgs @techcityuk @gerardgrech
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- 24. 2 4 +2.8x 1.56M UK Tech Jobs Jobs growing 41% In non-‐digital industries like educaOon & Finance Faster than the wider economy £50K Average UK Tech salary +36% Higher than UK average salary 4. The UK’s tech talent pool is growing fast Source: Tech Na.on 2016 Report, Tech City Uk/Nesta @techcityuk @gerardgrech
- 25. 8The pool is deep & extensive, with international HQs, world class institutes & top research universities International & EU HQs Technology Institutes World – Class Universities
- 26. 38 ROUNDS £1.5 Bn RAISED + £1.22 Bn RAISED FROM 5 IPOs + 10 ACQUISITIONS In the last 20 months… Good conditions create great companies @techcityuk @gerardgrech
- 27. Why is all this so important? We need to create a sustainable ecosystem and future-‐proof the economy and controibute to making it more resilient & productive. InsDtutes UniversiDes Govt. Dept. (naDonal & Inter). Local AuthoriDes Investors Entrepreneurs Corporates Incubators Accelerators Stock Exchanges Colleges InternaDonal hubs @techcityuk @gerardgrech Developers
- 28. | Thank you for listening. Gerard Grech, CEO, Tech City UK Visit our website: Techcityuk.com Follow us on Twitter: @techcityuk @gerardgrech